"Relative Performance, Banker Compensation, and Systemic Risk," (with Luis Cabral and Jose Guedes) first version November 2016.
Shows that the presence of relative performance evaluation in compensation contracts and of correlated projects creates systemic risk. Caps on incentive pay and on total pay are not ineffective in reducing systemic risk.
"Institutional Investors and Corporate Political Activism," (with Zicheng Lei, Jorg Rocholl, and Chendi Zhang) first version March 2015.
Analyzes the stock market response of firms with and without public pension fund ownership to the U.S. Supreme Court decision on Citizens United v. FEC.
“Corporate Social Responsibility and Firm Risk: Theory and Empirical Evidence,” (with Art Durnev and Yrjo Koskinen) October 2015. First version: November 2011. Recipient of a BSI Gamma Foundation grant in 2011, the Best Paper Award at the Geneva Summit on Sustainable Finance in 2013, and the ECGI Finance Best Paper Award for 2013.
Presents a model of how CSR affects firm systematic risk and provides evidence consistent with the model.
"International Corporate Governance Spillovers: Evidence from Cross-Border Mergers and Acquisitions," (with Miguel Ferreira, Luis Marques and Pedro Matos) First version August 2013. Recipient of the CICF Best Paper Award at the 2014 China International Conference in Finance, Chengdu, China.
Documents that foreign direct investment is a vehicle for governance improvements in host countries.
“Skewness in Stock Returns, Periodic Cash Payouts, and Investor Heterogeneity,” March 2010. First version: November 2009.
Models the effect of firm announcements on conditional heteroskedasticity and trading volume.